Acquisition, registration taxes likely to rise

The government said it is considering nearly doubling the acquisition and registration taxes with the aim of blocking tax evasion in the selling of apartments and commercial buildings.

The Ministry of Government Administration and Home Affairs (MOGAHA) said the official prices of buildings, which are used as the basis for taxation, reflect only 30-40% of their actual value, thus leaving room for tax irregularities. The ministry intends to introduce a pricing system that reflects up to 70-80 percent of the buildings` actual value. Based on the results of research by the Korea Appraisal Board, which will be available in September, MOGAHA is expected to submit a revision of the local taxation system to the National Assembly during the first half of next year at the earliest.

Yang Ki-Dae kee@donga.com